October sales in the Vancouver Island Real Estate Board area decreased somewhat compared to the previous month but remained very strong overall. There were 1,066 units sold throughout the board area (524 of them single-family homes). Single-family homes were up 53% year over year and down 18% from the previous month. Condos were up 48% from last year and 6% from last month. Townhomes also were up from last year, 51% year over year but 10% down from September.
Inventory took a significant hit compared to last month and could be at fault for the decrease in sales volume (as opposed to an actual decrease in demand). There were 733 single-family homes available at the end of October which was a 19.3% decrease compared to the end of September. Condo inventory was down too, by 14%, hitting 333 listings and townhomes hit 197 listings, down 3%.The factors of low inventory and pressure from demand are creating unique market conditions, especially in a month when we usually see things start to slow down until the new year. Taking the Cowichan Valley as an example we see that there are 1.22 months of single-family home inventory, with 4-5 months inventory typically being considered a balanced market. As with many places on Vancouver Island, the Cowichan Valley is being strongly affected by low-interest rates, early retirements, and out-of-town buyers. Although unlikely to continue on the current trend, it is likely we will still see higher than usual numbers in November and even December.How is all this affecting price? Well priced homes are selling above asking price and in multiple offers. Some are significantly breaking the 5% above asking price that we saw more regularly in the last few months. Benchmark Price according to the Home Price Index (board-wide) hit $536,500 for SFD (3% up year over year and 2% up from Sept). Again board-wide, condos hit $304,200 (up 3% year over year but down 2% from Sept) and Townhomes hit $438,200 (up 9% year over year and 1% from Sept).Here is a breakdown of regional benchmark values and how they have changed year over year:
| Campbell River | $468,300 | +5% |
| Comox Valley | $534,300 | +>1% |
| Duncan | $498,400 | +3% |
| Nanaimo | $558,100 | +>1% |
| Parksville-Qualicum | $619,600 | +6% |
| Port Alberni | $339,900 | +2% |
| North Island | $229,000 | +15% |
| Victoria | $879,600 | +2.3% |
As we have said before, now is a great time to sell. We saw a dip in single-family sales but that could be purely an inventory problem (so if you have one to sell, give us a call). Condos saw a big jump in demand after a few months of lagging behind. As we continue into uncertain times, we here at The Neal Estate Team continue to guide our clients with proven experience as our team approaches 5,000 lifetime homes sold this month.
If you would like to know how we are beating the market and helping our clients win, please click Here for a FREE consultation. Find new listings before they get to MLS and ask us about featuring your home on VictoriaComingSoonListings.com, where we generate interest while you're getting ready to come to market. Ask us also about our FREE Staging Consultation for advice on preparing your home in its best light for the market, ensuring you the best results.
Stay safe,
The Neal Estate TeamYour Victoria & Vancouver Island Real Estate Experts“Let our experience be your guidewww.RonNeal.comwww.HomesOnVancouverIsland.ca
